The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has assured Ghanaians that the strengthening cedi will soon lead to lower prices of goods and services across the country.
Speaking at a press briefing after the Monetary Policy Committee (MPC) meeting on Friday, May 23, 2025, Dr. Asiama explained that although price adjustments lag behind exchange rate movements, the impact of the cedi’s sustained appreciation will begin to reflect in retail prices over the coming months.
Price Reductions on the Horizon
“You can understand that some people stocked their goods at higher exchange rates,” he said. “So even with the appreciation, it takes a while to see that adjustment. However, you’ll see the change, especially in a competitive market.”
The local currency has made impressive gains, appreciating 24.1% against the US dollar, 16.2% against the British Pound, and 14.1% against the Euro, according to the latest BoG data. As of May 2025, the cedi trades at approximately GH₵11.85 to the dollar, GH₵15.84 to the pound, and GH₵13.34 to the euro.
No Threat to Export Competitiveness
Despite concerns that the cedi’s rally could hurt export competitiveness, Dr. Asiama dismissed those fears. He emphasized that the MPC had reviewed the real exchange rate and found no signs of long-term real appreciation that could affect trade.
“While cedi stability in nominal terms is important, the key issue is real appreciation,” he noted. “Right now, we don’t face a competitiveness problem.”
As the cedi continues to recover from years of volatility, retailers and importers are under growing pressure to pass on the gains to consumers. Analysts say this could help stabilize inflation and boost confidence in the government’s macroeconomic reforms.
Cedi’s rebound driven by tight policy and forex reforms – BoG Governor
